Muthoot Fincorp, part of the Muthoot Pappachan Group, is planning to raise ₹3,000 crore through an initial public offering (IPO) after filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

According to the draft documents filed by the company on Wednesday, the proposed IPO will be entirely a fresh issue of shares. There will be no Offer for Sale (OFS), meaning existing shareholders will not sell their holdings as part of the issue.

The funds raised through the IPO are expected to be used to meet the company's future capital requirements, support additional lending and finance business expansion.

Gold Loans Remain Core Business

Muthoot Fincorp is part of the Muthoot Pappachan Group, which traces its origins back to 1887. The company has been operating in the gold loan business for more than two decades and has built its lending operations around secured financing.

Besides gold loans, the company offers several other financial products, including business loans, loans against property, supply-chain financing, digital loans, microfinance and housing loans.

The proposed public issue would provide the company with additional capital to support the expansion of these businesses.

Profit Nearly Triples in FY26

The company's financial performance improved significantly during the financial year ended March 2026.

Muthoot Fincorp's consolidated profit rose nearly threefold to ₹1,848 crore in FY26, compared with ₹607.90 crore in FY25.

Its consolidated revenue from operations increased to ₹11,203.81 crore in FY26 from ₹8,497.69 crore in the previous financial year.

The improvement in profitability comes as the company continues to expand its lending operations across gold loans and other financial services.

Entire IPO Will Be Fresh Issue

The ₹3,000-crore issue will consist entirely of newly issued shares.

Under a fresh issue, the company creates and sells new shares to investors. The money raised goes directly to the company and can subsequently be used for purposes such as strengthening capital, expanding operations or supporting lending activities.

In contrast, an Offer for Sale involves existing shareholders selling their shares to public investors. In that case, the proceeds go to the shareholders selling their holdings rather than to the company.

Since Muthoot Fincorp's proposed IPO does not include an OFS component, the entire issue proceeds will be available to the company, subject to the terms outlined in the final offer documents.

Capital to Support Future Lending

The company plans to use the IPO proceeds to meet its future capital requirements and support its lending activities.

Additional capital could allow Muthoot Fincorp to expand its loan book and strengthen its ability to finance customers across its various lending segments.

The company has not yet announced the final IPO dates, price band or other issue-related details. These will be determined at a later stage, subject to regulatory approvals and market conditions.

Muthoot Pappachan Group Background

Muthoot Fincorp operates under the Muthoot Pappachan Group, a financial services group with roots dating back more than a century.

Its presence in gold financing has made it an established player in India's non-banking financial services sector. The company has gradually diversified into multiple lending categories while retaining gold loans as its core business.

The proposed IPO will mark an important step in the company's plans to raise additional capital from public markets and support its next phase of growth.